My settlement agent has been quite behind the 8 ball throughout the whole process of the purchase of my IP. Settlement was booked for 2pm today (Monday) and I only just got the invoice from them to pay the final deposit amount (after I chased it up saying if I dont get the invoice today I dont see how any money will clear in time). I had a query about it, but didnt get a response until Friday, so that is when I transfered the money out of my online savings account to my linked transaction account. My bank arranged it as it was a large amount that exceeds my daily limit.
Settlement got pushed to Tuesday (tomorrow) because of the seller's bank.
I have been checking constantly to see if the money went in. At 7.20pm I got an email from my online savings bank saying the money was credited back. I called them and they dont know why as the bank details are correct (i have regular money passing between these accounts), and probably what happened is there was a manual processing error.
So now the only option I have (as told by the bank) is to reissue the transfer. It will be done tomorrow as there is no one with the authority at this time of night.
So there is no way settlement will be on time.
I feel 'strongly annoyed' at the settlment agent for leaving it so late to invoice me. But if the bank didnt make a mistake, then it would most likely not of been a problem.
What happens if settlement is delayed?
Oh, I have a home open scheduled for Wed 6pm with 30 applicants attending.
If settlement is going to be delayed, it's best to let the lawyers know so that they can cancel the meeting….as the vendors, yours and the bank's lawyers/settlement agents will be present and it would suck for you to pay for their fees.
If settlement is delayed, the vendor can charge interest ( how much depends on your contract, but it's normally 10-15%PA)…most vendors are ok with 1-2 days delay and may not charge the penalty interest.
Regards
Michael
Mick C | Shape Home Loans
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Thanks. I dont know of any lawyers involved in this. I have told the settlement agent that the money is likely to be delayed.
The vendor delayed settlement first, so I take that as a sign that they wont charge us interest. Hopefully.
Do I have any recourse because I wasnt given much time to pay? Or am I clutching at straws?
Thats your first problem – not using a lawyer.
Why are you being issued an invoice if you are paying a deposit.? Where is the money going to?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
This is the 3rd property we've bought (but first IP) and no one has ever mentioned we needed a lawyer. At waht stage do you hire one? What is their role?
The invoice is for the remainder of the 10% deposit (minus what we paid when the offer was accepted), plus rates/water adjustment, plus settlement agent fees (inc title search and reg etc).
Update – settlement day has been pushed to thursday and no one seems to mind.
You need a lawyer to provide legal advice and to do the conveyance. You should hire them before you sign any contract.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
My settlement agent is reffered to as the conveyancer
I always opt to pay an amount directly into the trust account of my solicitor (who I use to handle all my purchases). I pay in an amount that exceeds what I know will be required for settlement. I make sure it clears in their account at least three days prior so that if there are problems, there is time to fix them. On settlement day, my solicitor pays leftover monies back to my bank account. I like this system. I do not like the concept of running around like a headless chook on settlement day getting bank cheques drawn up myself. I do not want to be a link in the chain at all on settlement day. The only involvement I want on settlement day is answering the call from the solicitor advising me everything is all done and the property is in my name.
Back to this business of using a conveyancer. I just don't get it. You're buying something worth hundreds of thousands of dollars. What is a conveyancer going to do if something goes wrong? Let's say the owner decides to remove the entire kitchen and all the carpets and expects the property still to settle in your name. You need a solicitor to throw their weight around on your behalf when such things happen.
Jacqui Middleton | Middleton Buyers Advocates
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renel wrote:My settlement agent is reffered to as the conveyancerMaybe thats the problem!
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Renel are you in WA? In WA the settlement agent is the person who acts like the lawyer in the eastern states…..
You mean conveyancer? In NSW we have lawyers and conveyancers doing property. In WA I think Coveyancers are called settlement agents but they are not lawyers and are not legally qualified to practice law.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Terry,
That is correct – conveyancers/settlement agents pretty much an interchangeable title and cannot give legal advice.
Any curly ones will be referred to a property lawyer.
Yes, I didn't mean they could practice law! I have only every used a settlement agent – would you usually only engage a lawyer if needed?
JacM wrote:Let's say the owner decides to remove the entire kitchen and all the carpets and expects the property still to settle in your name. You need a solicitor to throw their weight around on your behalf when such things happen.JacM, believe it or not this happened to me. Once the solicitor had his money he couldn't care less.
Yes Im in WA
BTW – settled today. All went smoothly.
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